Brazil Stocks Sink As Jim Chanos Slams Petrobras

http://www.forbes.com/sites/kenrapoza/2014/10/21/brazil-stocks-sink-as-jim-chanos-slams-petrobras/

Sometimes all it takes is a celebrity investor to say something bad about a market and the investor riff-raff go running for the door. On Monday, famed investor and regular CNBC guest Jim Chanos said Brazilian state owned oil company was not an investment, but an investment scheme. He was referring to what most Petrobras Petrobras watchers already know — that the company is used by the government as a revenue stream, and as a means to control inflation as it keeps a lock on gasoline prices.

Chanos said this on a day when Petrobras shares had down their usual mega-drop, falling 6% in a day. Less than 12 hours later, the stock opened 6% lower on Tuesday following Chanos’ guidance.  He’s laughing all the way to the bank this week.